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Guernsey Approves 103 New Funds In 2013

by Jason Gorringe, Lowtax.net, London
07 March, 2014

Guernsey's financial services regulator approved 30 new investment funds during the fourth quarter of last year. Throughout the whole year a total of 103 new funds were approved.

The net asset value of funds under management and administration decreased by GBP1bn (USD1.67bn) during the fourth quarter to GBP266bn at the end of December, representing a decline of GBP10.8bn year-on-year.

Fiona Le Poidevin, Chief Executive of Guernsey Finance – the promotional agency for the territory's financial services industry, said: "The relatively small movement in the quarter signals some stability and the fact that exchange rate factors were once again at play highlights the way in which asset values were impacted by external factors throughout 2013. We've also seen an increase of GBP3.8bn in the value of our closed-ended sector which has been one of the engines for growth in Guernsey's funds industry over the last few years."

"During 2013 we saw a notable increase in the number of new funds being approved for domiciling or servicing in Guernsey. Indeed, it is something of a vote of confidence in Guernsey's approach to the Alternative Investment Fund Managers Directive (AIFMD) that a significant number were approved after the start of its implementation in Europe."

Guernsey's own opt-in AIFMD equivalent regime came into effect from January 2, 2014. This is the second strand of a "dual regime" where the other parallel regime is the existing regulatory framework for managers and investors not requiring an AIFMD fund, including those using EU national private placement regimes, and those marketing to non-EU investors.

GFSC approved four open-ended funds and 12 closed-ended funds between the start of October and the end of December last year. In the same period it approved 14 non-Guernsey schemes – open-ended funds which are not domiciled in Guernsey but where some aspect of management, administration, or custody is carried out in the island.

The value of Guernsey-domiciled open-ended funds decreased by GBP2.9bn during the fourth quarter to GBP41.7bn at the end of December. Meanwhile, the value of the closed-ended sector increased by GBP3.8bn to GBP136.1bn, and that of non-Guernsey schemes decreased by GBP2.3bn to GBP88.1bn. Since December 31, 2012, the net asset value of non-Guernsey schemes has decreased by GBP7.4bn.

Other figures from the GFSC show that the value of deposits held by banks in Guernsey fell by GBP400m during the fourth quarter to reach GBP83.7bn at the end of December, representing a decline of GBP3bn year-on-year.

The total number of international insurance entities licensed in Guernsey reached 758 at the end of December, with 89 new licenses issued during last year and net growth of 21 entities year-on-year. Guernsey was once again named European captive domicile of the year at the UK Captive Services Awards 2014 in London last week.

In addition, statistics from the London Stock Exchange (LSE) show more Guernsey incorporated entities listed on its markets than from any other jurisdiction globally with the exception of the UK.

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